BRICS countries will require additional annual investment of $51 billion on average to meet their current renewable energy capacity addition targets, says a report. The Institute for Energy Economics and Financial Analysis (IEEFA) today said that overall nearly $10 billion would need to come in annually from public finance institutions to channelise sufficient private funds to meet the renewable energy capacity targets of BRICS nations.

Brazil, Russia, India, China and South Africa make up the grouping.

“The current renewable energy targets of BRICS countries require an additional annual investment of USD 51 billion on average, which highlights the gap that may be filled by blended finance mechanisms,” IEEFA said.

The report has been released ahead of the BRICS Summit this week. IEEFA said there are pockets in the renewable energy space such as residential rooftop segment that are riskier and less attractive for private investments and entities like the New Development Bank (NDB) can play a crucial role in catalysing funds.

Overall, BRICS countries have announced targets to add renewable capacity of nearly 500 GW over time horizons ranging from 2020-2030.

“Meeting these targets would require an annual investment of around $ 177 billion. In comparison, the investment in the renewable sector in BRICS countries in 2015 was $126 billion, leaving an average shortfall of USD 51 billion,” the report said.

With respect to India, IEEFA said the country requires around $26 billion each year to meet its renewable capacity targets by 2022, including $5 billion annually to build a smart grid to handle higher production from renewable sources.